Scaling out and pyramiding

Work in units of $\sigma$ with the three plans of Worked example 4A.8 (fixed two-unit bracket; scale out; pyramid). (a) Verify the outcome distributions, means, variances and loss probabilities with $\mu=0$. (b) Compute the expected unit-days of exposure of each plan with $\mu=0$ and check (4A.16) for the variances. (c) With drift $\mu=0.1$, compute each plan's expectancy using Propositions 4A.6–4A.9 stage by stage.